Microsoft looking at subsidized 360?

Microsoft has been looking at the possibility of releasing a subsidized Xbox 360 console with a new marketing strategy. Apparently, the plan would be buyers in the US to be able to purchase an Xbox 360 at Microsoft Stores for $99 down and $15 per month for two years.

Before we get too far ahead of ourselves, if the talk is accurate those taking advantage of this program would also get Xbox Live Gold free during the two-year term, as well as some additional free streaming content from entertainment providers. Also, those taking advantage of this offer would get two-year warranty coverage on the Xbox 360.

The Xbox 360 bundle would include an Xbox 360 console with 4GB of flash storage, Kinect, one wireless controller, 2 years of Xbox Live Gold, corded headset, and likely some sort of an included pack-in title, which is said to be Kinect Adventures.

Before you brush this off as pretty darned expensive at $459 over the two-year term, remember that two years of Xbox Live Gold at the new price plus a Xbox 360 4GB unit would cost about $420 and not have a full two-year warranty. Still, the deal isn’t for everyone, that is for sure; but for some it could work out very well.

Sources tell us that the decision to move forward or not and what is included could change, but it is likely that Microsoft could be targeting this announcement for E3 if it moves forward with the offering.